Europe Economy

FTSE, DAX, CAC Called Higher on Greek Deal Optimism


European shares were called higher Monday on the back of hopes that Greece will secure its second bailoutwhen euro zone finance ministers meet later on Monday.

Caroline Purser | Photographer's Choice | Getty Images

The FTSE 100 was expected to open up 52 points, the DAX was called 81 points higher, while the CAC was expected to rise by 40 points at the open.

Officials from the euro zone finance ministries and the European Central Bank held a conference call on Sunday to run through the finer details of the 130 billion euro ($171.7 billion) bailout agreement.

Markets in Asia overnight were buoyed by China’s policy easing at the weekend.

China’s central bank cut the amount of cash banks must hold as reserves, boosting lending capacity.

Banks and insurers will swap bonds they hold for longer dated securities wiping off around 70 percent in the value of the asset.

This bond exchange is expected to launch on March 8 and complete three days later.

The Financial Times newspaper is reporting that euro zone governments are looking to the ECB and national central banks to help with the cost of the second bailout package which it says will amount to 6 billion euros more than was agreed by EU leaders last year.

U.S. markets are closed Monday to mark Presidents Day.

Related Tags